Super Summary AS-9

CA. Praveen Tawania The only book that balance your books SUPER SUMMARY AS-9 Purpose: Recognizing revenue arising in the course of the ordinary activities of the enterprise. Scope: The SALE of goods. The RENDERING of services. The USE BY OTHERS of enterprise resources yielding interest, royalties and dividends. Non-Applicability: Revenue arising from construction contracts. Revenue arising from hire -purchase, lease agreements. Revenue arising from government grants and other similar subsidies. Revenue of insurance companies arising from insurance contracts. Revenue Revenue is the gross inflow of cash, receivables or other consideration arising in the course of ordinary activities of an enterprise from: The sale o f goods, The rendering of services, and The use by others of enterprise resources yielding interest, royalties and dividends. REVENUE RECOGNITION IN SALE OF GOODS The PROPERTY in GOODS in TRANSFERRED for a PRICE. 1 Accounting Standards (For any query Whatsapp No. +91 9910026755) CA. Praveen Tawania The only book that balance your books All significant RISKS AND REWARDS have been TRANSFERRED and no effective control is retained. NO significant UNCERTAINTY EXISTS regarding the amount of consideration. It is reasonable to EXPECT ULTIMATE COLLECTION of consideration. REVENUE RECOGNITION IN RENDERING OF SERVICES Service is recognised either on COMPLETED SERVICE or PROPORTIONATE COMPLETION METHOD. No significant uncertainty exists regarding amount of consideration. It is reasonable to expect ultimate collection of consideration.  Completed service method recognizes revenue only when service complete or substantially complete. In such cases there is more than one act involved and revenue is recognised on execution of all those acts.  Proportionate completed method recognizes revenue proportionate with the degree of completion of services.  In such cases there is more than one act involved and revenue is recognised on execution of certain acts. REVENUE RECOGNITION IN USE OF ENTERPRISE RESOURCES BY OTHERS Interest: Revenue is recognized on the time basis determined by the amount outstanding and the rate applicable. Royalty: Revenue is recognized in accordance with the terms of the relevant agreement (accrual basis). Dividends: Revenue is recognized only when a right to receive payment is established. DISCLOSURE REQUIREMENTS When recognition of revenue is postponed due to the effect of uncertainties, an enterprise should disclose the circumstances in which revenue recognition has been postponed. 2 Accounting Standards (For any query Whatsapp No. +91 9910026755) CA. Praveen Tawania The only book that balance your books KIND ATTENTION CA/CS/CMA Students AS -6 HAS BEEN DELETED AND CHANGES IN OTHER AS The Central Government, in consultation with N ACAS, m akes Companies (Accountin g Standards) Amendments Rules, 2016 in which, there are changes in AS-2, AS-4, AS-10, AS- 13, AS-14, AS-21, AS-29. AS-6 has been deleted. WAITING FOR OFFICIAL NOTIFICATION . 3 Accounting Standards (For any query Whatsapp No. +91 9910026755)